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Clark Industries use ABC to allocate overhead costs. Clark manufactures 9,817 L3BASIC and 4,789 M4ADVANCED. The activities and the overhead costs of each activity are

Clark Industries use ABC to allocate overhead costs. Clark manufactures 9,817 L3BASIC and 4,789 M4ADVANCED. The activities and the overhead costs of each activity are as follows:

Activity Costs

Machine Setup $200,000

Machine Repair $300,000

Factory Maintenance $100,000

Cleaning Workplace $50,000

Sampling Product Quality $150,000

Total Overhead Costs $800,000

Clark uses 3 pools to assign overhead:

SETUP (includes Machine Setup and Machine Repair) DRIVER: # OF SETUPS

FACTORY SERVICES (includes Factory Maintenance and Cleaning Workplace) DRIVER: SQUARE FEET

QUALITY CONTROL (Sampling Product Quality) DRIVER: # OF LOTS

Products SETUPS LOTS SQUARE FEET

L3BASIC 70 25 12,000

M4ADVANCED 55 35 18,000

How much overhead should be allocated to 1 unit of M4ADVANCED

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